Nodle Cash app

Is it still economically reasonable to mine cryptocurrencies with your ordinary devices?

By Jalal Seifoddini | Jalal Seifoddini | 17 Mar 2022


It is a known fact that mining Bitcoin, Ethereum, and other cryptocurrencies that rely on the Proof Of Work (POW) standard as their blockchain consensus mechanism using ordinary computers and devices is economically impossible.

However, POW is not the only standard in the cryptocurrencies world. Proof of Stake (POS) is also a very popular consensus mechanism. It is more energy-efficient than POW, but you actually have to let your money (your tokens) work for you. To become a validator on a POS chain you have to lock up your coins and be patient. The more coin you stake and the longer you wait the higher the chances that you would be able to validate more blocks. Therefore, in this mechanism, you need to hold and stake a lot of coins.

However, blockchain consensus mechanisms are not limited to POW and POS. there are several other mechanisms too.

 

Proof of Space and Time (POST) is one of them. Chia is a well-known project that uses POST. In this type of mining, you need to provide a lot of hard drive space and dedicate a lot of time to it to be rewarded enough. Although hard drives may be cheaper than GPUs and other required hardware for mining in POW mechanisms, however, the payback period is much longer and also you need to buy expensive SSD hard drives. You may say that the amortization cost of this investment is also too high.

 

Generally, we can say that with the rise of attention to cryptocurrency projects, a lot of people are now attracted to mining cryptocurrencies and that has led to fierce competition. Hence, it is economically impossible to mine any type of cryptocurrency with your ordinary laptop. Therefore, we need to look for new projects that incorporate new consensus mechanisms.

Nodle Cash AppNodle Cash App Map

Nodle.com is kind of a new project that uses a different consensus mechanism called “proof of connectivity”. It aims to provide a worldwide Internet of Things (IoT) via devices’ Bluetooth. So, the only thing that validators need to do is to install the app and turn on their Bluetooth. The app would recognize other nearby Bluetooth devices and construct its network. It does not need to connect to other Bluetooth devices at its current phase of development. I guess it is the next phase of their plan to actually provide some services on this decentralized Bluetooth-enabled network. However, the important thing from a miner's point of view is that you only need a phone (which you already have, obviously) and install their app. That’s it. Their app also works as their wallet so it is actually a Bluetooth finding mechanism and a cryptocurrency wallet in the same app.

Finally, I should mention that all of these are based on my own experience and research and there may be some risks in mining Nodle tokens that I don’t know about. Or maybe I said something in this post that is not correct. So, you know what to do: first Do Your Own Research, and then decide.

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Jalal Seifoddini
Jalal Seifoddini

Jalal Seifoddini, CFA, has more than 10 years of experience as a financial analyst and portfolio manager (equities and alternatives). He has published several scientific papers, covering capital market microstructures, commodities, and cryptocurrencies.


Jalal Seifoddini
Jalal Seifoddini

Mostly dedicated to cryptocurrencies fundamental analysis

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